Alibaba rumored to acquire minor stake in BigBasket

Alibaba Group Holding acquired a minor stake in Hangzhou's e-commerce giant is rumored to have bought online grocery to expand new market share in India. A source said the US$300 million investment in BigBasket aims to compete Grofers and Amazon India.

BigBasket was founded by Menon Day, Vipul Parekh, Abhinay Choudhari, VS Sudhakar and VS Ramesh in 2011 in Bengaluru and currently has services in over 20 major cities in India. Alibaba and BigBasket have not commented on the new investment.

Tinuku Alibaba rumored to acquire minor stake in BigBasket

BigBasket currently holds market share as India's largest online food and beverage store with over 18,000 products and more than 1,000 brands. Customers shop for everyday needs through smartphones.

India's online grocery market in 2016 is estimated to be worth US$300 million. The Indian government in July approved a US$500 million Amazon investment to build retail food products that would compete directly in the BigBasket environment.